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Highlighted in blue are the 198.84 acres across six parcels still owned by Mulvaney affiliates, a property mass accessible via 8th Street, Boggy Creek Road and Rayburn Street, directly west of Orlando International Airport.
Highlighted in blue are the 198.84 acres across six parcels still owned by Mulvaney affiliates, a property mass accessible via 8th Street, Boggy Creek Road and Rayburn Street, directly west of Orlando International Airport. (Orange County Property Appraiser)

Indianapolis-based developer Scannell Properties has at least 42 acres under contract with the Mulvaney brothers at their Air Commerce Park west of Orlando International Airport, and is expected to file plans this month for a new 352,000-square-foot warehouse.

"We're working with a highly confidential client, we do have (the property) under contract and are planning to move forward," Daniel Madrigal, development manager with Scannell, told GrowthSpotter on Tuesday. "We're looking to do more in the Orlando market, potentially that same location with the Mulvaneys, but we're interested in other sites as well."

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Local real estate investors Kenneth and Brian Mulvaney have been looking for developers to buy portions of 239.54 acres of ex-Navy training property they've acquired in two rounds of transactions, in February 2008 and April of this year.

The Mulvaney brothers are looking for more industrial developers to buy up what is now 231 acres they own west of Orlando International Airport.

Of that total, the Mulvaneys still own 198.84 acres contiguous across six parcels, a mass accessible via 8th Street, Boggy Creek Road and Rayburn Street.

The property offers easy access to the airport, BeachLine Expressway, Florida's Turnpike, Interstate 4, and nearby rail lines.

Scannell Properties is a build-to-suit and speculative developer, with national experience in distribution/warehouse centers and logistical facilities.

The 42.07 acres under contract would be a portion of the Mulvaneys' largest land parcel (136.1 acres) within the Air Commerce Park. Brian Mulvaney declined to comment Tuesday on the prospective land sale.

The Mulvaneys and Scannell have yet to file their Specific Parcel Master Plan (SPMP) for the 42.07 acres, and face a deadline of this coming Monday to do so in order to stay on schedule with Orlando's Planning Division, after filing initial application forms on June 29. They also filed a parcel subdivision request the same day.

This prospective land sale and new facility are separate from what's already underway at Air Commerce Park by Indianapolis-based developer Becknell Industrial, which paid $7 million on March 30 for 40.68 acres of Mulvaney property. That has since been subdivided out into its own parcel.

City of Orlando issued a building permit on Aug. 11 for Becknell's 478,400-square-foot distribution center, to be based at 3650 8th St. Initial tenants are Mattress Firm and Sherwood Bedding taking a combined 309,400 square feet, while the remaining 169,000 square feet is being marketed by CBRE Inc.

"What we're seeing is a lot of demand for 100,000 square feet or more, whereas demand in this market averaged 50,000 square feet in the past. With the increase in statewide distribution brought on by the e-commerce trend, we've seen more users going big," said David Murphy, senior vice president with CBRE marketing the remaining Becknell space.

"Atlanta used to be the hub, and you'd have spokes in Orlando and Jacksonville. Today the hub is here," he continued. "There's currently 5.5 million square feet of tenants out in the market looking for space (in Greater Orlando), based on our analysis."

Cite Partners published a report Aug. 1 on the Central Florida industrial market for Q2 2016, highlighting that total vacancy fell for a fourth straight quarter to 7.0 percent. Southeast Orange County had a 9.0 percent vacancy rate, the highest among regions within the county.

The Southeast Orange industrial market currently has all of Greater Orlando's new construction: nine buildings totaling 1.65 million square feet, with seven of those offering less than 135,000 square feet, and half the total space now being built already pre-leased, per the report.

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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